AZ Refinance vs. Second Mortgage Options Explored.

Here's a good video that discusses the option of an AZ Refi vs. taking out a second mortgage. It's important to really understand all of your options when making this decision.

Checklist for Boosting Your Credit Score

The average American's credit score is 723. Having a high credit rating will help you with your AZ Refi application, and final rates.   In fact, the first thing you should do when applying for a n AZ Home Loan, is to obtain your credit report, check it for accuracy, and be aware of any issues that come up.

Moving forward, here's a checklist for increasing your credit score

1. Pay on Time Every Time 

Every lender wants to know that you will pay your bills on time, and preferably in full, every time.

2. Use a Variety of Credit

A mix of mortgage loans and credit cards shows that you are adept and able to pay back a variety of both large and small financial promises.

3. Keep Your Accounts Open For A Long Period of Time

Don't open accounts to take advantage of a free offer or points, and then close it right away.  The longer your credit history with an account, the higher your credit rating will be.

To see all of the factors that affect your personal credit score, you should check your credit report.  See your Credit Score for $0 at CreditReport.com.  It’s Free and available in seconds..  They will give you a free detailed, personalized analysis of your credit report with advice on how to improve it. (And checking your own credit report will not hurt your credit score.)

Your credit report  will show you details like accounts with past late payments, the various types of credit you've used, current balances and recent requests for credit. You also have the opportunity to fight negative or wrong information on your file. They can also refer you to credit repair agencies if you need additional support.

AZ Refi - Are You Considering Refinancing Your Home Loan? Part 4

Maybe Refinancing Isn’t the Best Option For You 


Homeowners who are considering a refi quickly come to realize the value of evaluating multiple refi options to determine which is best for them. 

What some come to realize is that the best option may be to not refinance.  This is often labeled as the "do nothing" option because it speaks to the situation the homeowner creates if they don't make a change in their mortgage. 

Here are the considerations for each refi option you may be reviewing:

• The Estimated Monthly Payment
• The Total Amount of Interest Paid Over the Entire Life of the Loan 
• The Term of the Loan (Year it Will Be Paid Off)
• Amount of Time Owner Will Need to Break Even on Closing Costs From the AZ Refi 

Arizona homeowners should look closely at the cost of their refi options compared to the cost of their current mortgage.  Evaluate this info in a spreadsheet or on a legal pad so you can look at the numbers side by side.  Often it will be really clear what your decision will be.

Arizona Home Loan Modification

An update on AZ Home Loans through loan modification.

How the AZ Rate and Term Refi works

The Arizona Rate and Term Refi simply lowers you interest rate.  For example, if your currentinterest rate is 7%, you will refi to 6%.  The Rate and Term refi can have zero costs OR you have the option to pay an additional amount upfront to buy down your interest rate.

A common question is whether there is a no cost AZ Refi available.  The answer is yes, but keep in mind that there are fees incurred during hte refi.  How else would an appraiser and title company be able to stay in business?

Here is how a "No Cost" AZ Refinance works...

First, that's just a term.  You have to realize there is always a cost somewhere.  On a zero-cost refinance, you will pay a higher interest rate.  Which isn't always a bad thing.  For example, if you are a short-term investor and want to sell your property after a remodel.  Given this scenario, if you invest a few thousand in closing costs, you won't be invested long enough to recapture your investment.  Or, you can simply buy down your rate by paying points.

If you are going to live in or keep your home for a few years, then it will be in your best interest to get the lowest rate by paying the closing costs.   With this alternative, you'll save on your monthly payment and you will break even within a few years.  Just figure out where your break even point is.  Then you'll be able to determine where your best refi option is for your AZ Home Loan. 






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AZ Refi: Cash Out Option

If you live in Arizona and are looking at the "cash out" refi option for your AZ Home Loan, you should consider the pros and cons before you make a decision. 

There is a higher rate penalty to the cash out refi (because of the cash out part) however, this option is widely considered to be one of the best ways to borrow money.  It's hard to find a better rate when you need the cash.  If this is your first mortgage refinance, then you can also claim the interest as a tax deduction (this isn't available for second mortgages unless the money is used for home improvements). 

If you refi your first mortgage, it will cost more than obtaining a new line of credit, however, the additional cost difference can be consolidated into the new refi, so you won't have any out of pocket expenditures.  

Then, a home appraisal and your AZ Title insurance are the only items that you will have out-of-pocket expenditures for. 

Remember that there is a three day cancellation policy when you have an Arizona Refinance.  During this 3-day period, make sure and re-review all of your papers and be certain in your decision.  Even though you've signed the papers, you still have three days to reconsider.

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The First Step in your AZ Refinance: Obtaining Your Credit Score

The biggest obstacle to most homeowners looking for an AZ Refinance (AZ Refi) is a poor credit score.  So you should start off by researching your credit score and fixing any credit issues before you contact any Arizona mortgage company. 

You will get your credit score from a credit report, which is just a record of your borrowing and repayment history.  All financial institutions including credit card companies, banks, auto loan companies, etc. report your payment history to one, two or three of the major credit reporting companies in the US.  These companies include: Equifax, Experian, and TransUnion.

You will see two types of financial reporting that these firms track and report.  They include:

1. "Applied for credit" -- which simply means that you requested to borrow money from the lender that's reporting the application and

2. "Not applied for” credit -- which means that there are bills, civil judgements, or bad checks that are not a result of your credit application. 

If you pay your bills on time, you should not have the "not applied for" credit noted on your credit report.

The three credit agencies listed above will provide your credit report to the  AZ Refi lenders  in the form of a credit score.  If your score slips below a certain number, your loan options are limited. This credit score will determine the next step in your AZ Refinance.







 
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